The on-again, off-again talks are back on again and a deal is near, executives close to the negotiations told the New York Times. The executives reportedly agreed “in principle” to a merger last week.

Observers expect the pact to be announced this Thursday evening. Speculation is rife that the party Urbanfetch has been planning to launch its alcohol delivery service at the TriBeCa-based liquor store it bought in July is a cover for the announcement – which will end almost 18 months of struggle.

The two Web-based retailers, which deliver in under an hour to urban consumers, overlap in only one market – New York – but both have their headquarters here and are tussling for primacy.

Any deal between the two private companies is expected to be transacted in stock, with Kozmo (orange uniforms) trading some of its equity for control of the assets of Urbanfetch (green uniforms).

Job cuts are expected, because Kozmo has three warehouses in the city, and Urbanfetch has two.

No spokespeople for either company were available yesterday due to the holidays.

Executives at Kozmo have already been through the books of Urbanfetch’s only other operation, in London, where it competes with local startup BagsOfTime.com.

Since being launched in New York in March 1998, Kozmo has been at odds with Urban Fetch.

Kozmo’s founders, Joseph Park and Yong Kang, pitched for venture capital to Ross Stevens, a partner at Integrity Capital Management. Stevens declined, but set up Urbanfetch soon after, with only slight differences in the business model.

However, since Park and Kang were kicked upstairs in July to make way for ex-Ethan Allen CFO Gerry Burdo, the likelihood of the companies merging has grown.